CECU’s Response to Supreme Court Decision to Hear Arguments in Biden Student Debt Relief Scheme

Career Education Colleges and Universities (CECU)

January 10, 2025

Arlington, VA – In a surprise Friday evening announcement, the Supreme Court of the United States agreed to hear arguments on the appeal filed by the Biden administration challenging the Fifth Circuit’s ruling in favor of Career Colleges and Schools of Texas (CCST), the state association representing for-profit career schools in Texas. Last year, the Fifth Circuit sided with CCST’s argument that the Department of Education (ED) lacked the authority to implement a punitive and expansive regulation providing additional student debt relief through the Borrower Defense to Repayment (BDR) process. The Biden administration challenged the Fifth Circuit’s ruling in favor of CCST, arguing that ED does have the authority to do so, as granted through the Higher Education Act. The Supreme Court accepted the case and agreed to hear arguments on the appeal, likely to be heard in April.

Dr. Jason Altmire, president and chief executive officer of Career Education Colleges and Universities (CECU), released the following statement on the decision:

“Today’s decision does not validate the Biden administration’s misguided attempt to weaponize the Borrower Defense process against proprietary schools. It simply means that the Supreme Court will hear arguments as to the scope of the Department of Education’s authority related to BDR. It remains to be seen how the incoming Trump administration will argue the government’s side of the case, but we strongly believe the facts of the case will show the Department’s onerous BDR regulation went well beyond the agency’s authority. We are thus hopeful that the Supreme Court will, once and for all, set defined limits on the Department of Education’s authority on this important issue.”

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About Career Education Colleges and Universities
Representing more than 1,300 campuses across North America, Career Education Colleges and Universities (CECU) is the national association representing private postsecondary career schools.

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